Archived - Canada and World Bank Finalize US$200 Million to Support Global Trade Finance

Ottawa, June 9, 2009
2009-058

Archived - Canada and World Bank Finalize US$200 Million to Support Global Trade Finance

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The Honourable Jim Flaherty, Minister of Finance, and Robert B. Zoellick,
World Bank Group President, today signed an agreement authorizing a
US$200-million Canadian contribution to the International Finance Corporation's
Global Trade Liquidity Program. Canada is the first country to officially
participate in this new program, a World Bank-led initiative that brings
together governments, international finance and development institutions, and
private sector banks, and will support much-needed trade finance in developing
countries.

"By keeping our fiscal house in order long before the global turmoil began,
Canada has been recognized as being better placed than many countries to weather
the global financial turbulence and worldwide recession," said Minister
Flaherty. "Canada has already taken steps to keep our world-leading financial
system strong through our Extraordinary Financing Framework. Likewise, this
Canadian support to the World Bank's new trade finance program will help shore
up global trade flows—a key element of global economic recovery."

"Supporting the Global Trade Liquidity Program will help get trade moving in
developing economies, which is critical for a global turnaround that would
benefit all countries," said President Zoellick. "Canada's $200 million will
have a multiplier effect by leveraging private sector resources for trade
financing, and will help vulnerable countries, hard hit by the crisis, to get
their goods to market."

Canada originally announced the US$200-million contribution at the London G20
leaders' summit in April. The funding is part of Canada's commitment to provide
additional resources to the World Bank and the International Monetary Fund to
help build a more stable global financial system and strengthen the global
economic recovery.

The signing coincided with President Zoellick's visit to Canada. President
Zoellick is also meeting with Prime Minister Stephen Harper, Minister of
International Cooperation Beverley J. Oda, Minister of National Defence Peter
Gordon MacKay, and Minister of Foreign Affairs Lawrence Cannon.

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